Friday, January 25, 2008

bond insuers take center stage

--once little known insurance companies now are taking center stage because their weakness have domino effect, undercutting the value of the bonds they garantee.
--cash infusions from outside investors won't be smooth
--not all banks have the same amount at stake. Citi and ML has relative larger exposure to bond insurance wrapping.
--all banks are tight in credit, they already stretched their balance sheet.